Amazon Web Services' investment in UK data centres could contribute £14bn to the economy

Chancellor Rachel Reeves secured the planned five-year investment last week at a meeting with Amazon Web Services. 

The investment is estimated to support around 14,000 jobs per year at local businesses, including those across the company’s data centre supply chain, such as construction, facility maintenance, engineering and telecommunications, as well as other jobs within the broader local economy. 

AWS estimates that these investments in the UK will contribute £14 billion to the UK’s total Gross Domestic Product (GDP) from 2024 to 2028.

Speaking from a University Technical College in Silverstone, which works with Amazon Web Services to introduce students to the skills required to enter the digital infrastructure industry, the Chancellor warned that “change cannot happen overnight” and “two quarters of positive economic growth will not make up for fourteen years of stagnation under the previous government”.

Reeves added; “I am under no illusion to the scale of the challenge facing our economy and I will be honest with the British people that change will not happen overnight. 

“Two quarters of positive economic growth does not make up for 14 years of stagnation under the previous government.

“However, this £8 billion investment marks the start of the economic revival and shows Britain is a place to do business. 

“I am determined to go further so we can deliver on our mandate to create jobs, unlock investment and make every part of Britain better off. The hard work to fix the foundations of our economy has only just begun.”

The investment announcement comes ahead of this year’s UK International Investment Summit on 14 October, where the UK will bring together the world’s most important companies and investors.

On 11 September, the Organisation for Economic Co-operation and Development (OECD) published its biennial surveillance of the UK economy, which provides analysis and insight into the state of the UK economy and policy challenges. HM Treasury has worked collaboratively on the Economic Survey with the OECD.

The survey recognises the UK’s weak growth and poor productivity growth over the past decade. This is partly the result of low investment, particularly since the UK voted to leave the EU in 2016. 

It highlights the importance of stability and certainty for business investment, as well as reforming the planning system.

Amazon Web Services Vice President and Managing Director, Europe, Middle East & Africa (EMEA), Tanuja Randery said: “The next few years could be among the most pivotal for the UK’s digital and economic future, as organisations of all sizes across the country increasingly embrace technologies like cloud computing and AI to help them accelerate innovation, increase productivity, and compete on the global stage.

“AWS is proud to announce our plans to invest £8 billion in digital and AI infrastructure over the next five years to help meet the growing needs of our customers and partners, and support the transformation of the UK’s digital economy.”